Beaksley SA Is a Very Cyclical Type of Business Which

question 2

Multiple Choice

Beaksley SA is a very cyclical type of business which is reflected in its dividend policy.The firm pays a €2.00 a share dividend every other year.The last dividend was paid last year.Five years from now,the company is repurchasing all of the outstanding shares at a price of €50 a share.At an 8% rate of return,what is this equity worth today?

• A)€34.03
• B)€37.21
• C)€43.78
• D)€48.09
• E)€53.18

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Definitions:

Opportunistic

Refers to an approach or action taken with the aim of exploiting situations to one's advantage, often with little regard for principles or consequences.

Country Club Manager

A leadership style characterized by high concern for people and low concern for production tasks.

Task Structure

The degree of clarity, or ambiguity, in the work activities assigned to the group.

Situational Favorableness

The extent to which a situation presents advantages or beneficial conditions to an individual or group.